McNally Capital (“McNally”), a private equity firm, is pleased to announce the firm has entered into a signed purchase agreement for the sale of Advanced Micro Instruments, Inc. (“AMI” or the “Company”) to Enpro Inc. (NYSE: NPO). AMI is a leading provider of highly engineered, application-specific analyzers and sensing technologies that monitor critical parameters to maintain infrastructure integrity, enable process efficiency, enhance safety, and facilitate the clean energy transition.
Based in Costa Mesa, California, AMI serves customers in the midstream natural gas, biogas, industrial processing, cryogenics, food processing, laboratory, wastewater, and aerospace markets. The company offers a portfolio of oxygen, hydrogen sulfide, and moisture analyzers and proprietary sensing capabilities that detect contaminants in a variety of processes, including natural gas and biogas streams, which enable operators to avoid flaring and, thereby, reduce CO2 emissions. McNally invested in AMI in partnership with the company’s founder, Steven Kirchnavy, in 2014. The investment stemmed from McNally’s focus on the industrial products and services industry. It was consistent with the firm’s strategy of partnering with founders and management owners to promote the continued success and expansion of privately-held businesses.
“Under McNally’s stewardship, AMI has strengthened in all facets. From facilitating revolutionary product development and organic growth to diversifying our client and distribution base with widespread industry adoption of AMI’s products, they have driven tremendous value creation for the Company,” said AMI founder and former President and CEO, Steven Kirchnavy.
Adam Lerner, Partner of McNally Capital, stated, “The sale of AMI highlights the merits and strength of McNally Capital’s value creation process, directly impacting our investors and management teams throughout a full transaction lifecycle. It is also a testament to our differentiated investment strategy of successfully bringing industry expertise to founder-owned businesses to not only support but greatly enhance their growth journey. We are proud to have worked with such a highly accomplished team in providing a solutions-focused approach to accelerate the business.”
“AMI has experienced meaningful growth through our partnership with McNally Capital, further establishing us as industry leaders. We look forward to continuing our growth trajectory by joining the Enpro family,” said Kevin Bates, President and CEO of AMI. “We are grateful for the strong positioning McNally has strategically fostered for the Company, and this is an exciting next chapter for AMI.”
McNally Capital makes thesis-driven investments in the U.S. and targets founder- and management-owned companies. The firm leverages a deep bench of industry partners who provide incremental industry and operating knowledge and expertise. McNally focuses on investing in lower middle-market businesses with $5 million to $20 million in EBITDA in the Aerospace & Defense/National Security, Industrial Products & Services, and Business Services industries. The firm is currently investing out of its committed buyout fund, McNally Capital Fund II, LP.
The transaction is expected to close in early 2024, subject to limited closing conditions, including regulatory approvals.
William Blair served as the sell-side advisor to AMI. Ropes & Gray LLP served as legal counsel supporting the transaction on behalf of the sellers.
About McNally Capital
McNally Capital is a lower middle-market private equity firm targeting thesis-driven investments in the U.S., specifically focused on acquiring founder and management-owned companies. Formed by the McNally family, who owned and operated Rand McNally & Company, McNally Capital is dedicated to upholding a 160+ year legacy as a family-owned and operated company. We look for businesses where we believe we can apply our hands-on experience, institutional capabilities, and proprietary value creation framework to benefit management teams in their next phase of growth and build value for our investors. For more information, please visit www.mcnallycapital.com.
About Advanced Micro Instruments, Inc.
AMI is a majority-owned portfolio company of McNally Capital, LLC, a Chicago-based private equity firm. AMI is a leading provider of highly engineered, application-specific analyzers and sensing technologies. Based in Costa Mesa, California, AMI serves customers in the midstream natural gas, biogas, industrial processing, cryogenics, food processing, laboratory, wastewater, and aerospace markets. The company offers a portfolio of oxygen, hydrogen sulfide, and moisture analyzers and proprietary sensing capabilities that detect contaminants in a variety of processes, including natural gas and biogas streams, which enable operators to avoid flaring and, thereby, reduce CO2 emissions. For more information, please visit www.amio2.com.
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